K’taka Rejects Rapido’s Demands For Contract Carriage Permits For Bike Taxis

The Karnataka government has outrightly rejected ride-hailing major Rapido’s demands for issuing contract carriage permits for bike taxis. 

Days after Karnataka government rolled back its 2021 electric bike taxi policy, Rapido, on Tuesday (March 12), reportedly urged the authorities to issue contract carriage permits for bike taxis. 

However, state transport minister Ramalinga Reddy, as per The Economic Times, said that there are no plans to issue such permits for two-wheelers in the near future. 

In simple words, a contract carriage refers to a motor vehicle which carries a passenger for hire or reward under a contract.

Batting for issuing contract carriage permits for two-wheelers, the Bengaluru-based startup had urged the local authorities to adopt a comprehensive approach, modelled after the provisions of the Motor Vehicle Act and the recent advisory from the Ministry of Road Transport and Highways (MoRTH) to grant such licences.

The MoRTH issued the advisory in January this year, clarifying that motorcycles fall within the definition of contract carriages.

“This move (“the comprehensive approach”) is not only crucial for the growth of the sector but also ensures compliance with the existing provisions of Motor Vehicle Act, 1988 and Motor Vehicle Rules,” Rapido cofounder Pavan Guntupalli told ET.

Meanwhile, Rapido lauded the Congress-led state government’s decision to rescind the 2021 bike taxi policy. In a statement, the company said that the move reflects the “government’s commitment to fostering a conducive environment for innovation and growth within the ride-hailing sector”.

However, the ride-hailing startup reportedly also said that the withdrawal of the policy has created “confusion” that bike taxis would be banned despite the recent order nowhere mentioning this. 

“It is worth mentioning that the recent notification issued by the government nowhere mentions banning Rapido or any other aggregator operating under the protection of the High Court order,” the company added.

The “protection of HC order” refers to the Karnataka High Court’s August 2021 directive that directed the transport authorities not to take any “coercive action” against Rapido’s bike taxi service. Interestingly, the matter pertaining to extending the validity of this interim order will come up for hearing next on March 20.

Meanwhile, Guntupalli claimed that Rapido’s bike taxi service will be seamlessly available within the state. 

“Rapido is upholding the interim order from the Hon’ble High Court, which recognises the legality of Rapido’s operations, reinforces our resolve to continue serving the people of Karnataka,” the cofounder added.

The comments come just days after the state authorities rescinded the 2021 bike taxi policy citing its misuse. At the time, transport minister Reddy attributed the revocation of the rules to a lacklustre response from app-based aggregators and safety issues for women. 

The ride-hailing companies have been in the crosshairs of auto unions and the state government for some time now. Last year, auto drivers blocked some bike taxis and even assaulted the riders during a protest. 

On the other hand, the state authorities had more or less banned bike taxis citing issues related to women’s safety. However, the 2021 scheme eventually ended the standoff between bike taxi operators and the government.